Hedge fund shorting activity shifted sharply in April as macroeconomic headwinds, trade friction, and sector rotation pushed investors away from high-flying tech names and toward consumer and financial stocks, according to Hazeltree’s latest Shortside Crowdedness Report.

Capital One Financial Corporation topped the list of most crowded large-cap shorts in the Americas with a perfect Hazeltree Crowdedness Score of 99, while French luxury giant LVMH claimed the top spot in EMEA, displacing Kering SA after a three-month streak. In the APAC region, a wave of eight new entrants – including Aeon Co, Ltd, Nintendo, and Hon Hai Precision – knocked Disco Corporation from its long-held perch.

The report, which analyses aggregated shorting data across more than 15,000 global equities sourced from Hazeltree’s 700-strong hedge fund client community, reflects a marked pivot away from technology and into broader market hedges. The SPDR S&P 500 ETF Trust (SPY) meanwhile, made its first-ever appearance in the large-cap crowded list – a sign of increased bearish sentiment toward the broader index.

“April’s spike in volatility amid fresh tariffs and geopolitical tension forced managers to re-evaluate positioning,” said Tim Smith, Managing Director of Data Insights at Hazeltree. “With outflows accelerating from the SPDR ETF and tech exposure falling, we’re seeing a more defensive posture as investors look to navigate market churn and protect returns.”